Creditors Meeting - 341
The "341" or Meeting of the Creditors.
About a month after the case is filed a "341" or Creditor's Meeting is held. They should change the name. Creditors rarely come anymore. It should be called the Trustee's Meeting. A Trustee is appointed to administer the "estate". The Trustee's job is to conduct the 341 meeting, swear in the debtors and examine them about the information in the petition.
If in a Ch.7 case, the debtors have more assets than they are allowed, they must either turn something over or pay the Trustee who then makes a distribution the creditors. In a Ch.13 case, the Trustee's job is to collect the monthly payments and distribute money to the creditors according to the "Ch. 13 Plan". At a Ch.13 meeting, the Trustee usually only discusses the details of the Plan that has been filed with the Court.
Most 341 meetings take only 5 minutes and are very low key. Most of the time my clients ask me as we are leaving the hearing room, "That was it? That was all?" The better the job preparing the petition, the easier and shorter the creditors meeting. Short is good. I like short.
Chapter 7
If the Trustee does not find assets to be distributed, a "No Asset" report is filed and the case will normally close two to three months later. If the Trustee is able to collect money or assets, all creditors are notified and a distribution is made based on the Proof of Claim filed by each. An asset case can last well over a year.
Chapter 13
The first Ch. 13 Plan payment is due 45 days after the case is filed. Creditors are given the opportunity to file a Proof of Claim if they want to receive money from the plan. Several months later, a Confirmation Hearing is held. The Judge will review the proposed Plan with the Trustee, the Debtors, the Debtor's attorney and any creditors who wish to appear. The confirmed plan can last up to 60 months. The Judge will sign the discharge after the successful completion of the Plan.
Creditors' Meeting